Best CPA for Contractors in DC, Maryland, and Virginia
Running a contracting business — whether HVAC, plumbing, pool construction, or general contracting — means juggling project deadlines, labor management, and fluctuating material costs. What many business owners overlook is how the right financial systems and tax planning can directly impact long-term profitability.
At Shahbaz & Associates CPAs, we help contractors across DC, Maryland, and Virginia build financial systems that support growth and stability.
Track Job Costs, Not Just Expenses
Contractors live and die by their margins. If you’re only tracking general expenses, you’re missing the details that matter.
Implement job costing to break down costs by labor, materials, and overhead per project. This lets you:
- Price future bids more accurately.
- Identify underperforming projects early.
- Prevent underbilling and margin erosion.
Keep Cash Flow Predictable
Cash flow is one of the biggest challenges for contractors, especially when payments are milestone-based or delayed by clients.
Set up progress billing systems and retainage tracking to keep revenue aligned with project completion.
A CPA can help you structure your accounting so your reported income reflects real progress, not inflated paper profits.
Stay Compliant with 1099 Subcontractors
Worker classification is a critical area of compliance. Misclassifying subcontractors can lead to IRS penalties and back taxes.
If your subs work under your direction, use your tools, or follow set schedules, they may be considered employees.
Work with your CPA to:
- Collect and file W-9 forms before payment.
- Issue 1099s correctly and on time.
- Review subcontractor relationships annually.
Plan for Taxes Year-Round
Waiting until tax season to think about deductions often means leaving money on the table.
Track deductible expenses like vehicle mileage, tools, safety gear, and equipment depreciation throughout the year.
A CPA experienced in construction and trades can help you take advantage of Section 179 and bonus depreciation rules — especially for vehicles, heavy machinery, or office equipment.
The Bottom Line
Contractors who understand their numbers build more than just projects — they build financial stability and long-term growth.
If you’re a contractor in DC, Maryland, or Virginia, Shahbaz & Associates CPAs can help you strengthen your financial foundation through smarter accounting, cash flow systems, and tax strategy. Schedule a consultation today to get started.